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Finland was a province and then a grand duchy under Sweden from the 12th to the 19th centuries, and an autonomous grand duchy of Russia after 1809. It won its complete independence in 1917. During World War II, it was able to successfully defend its freedom and resist invasions by the Soviet Union - albeit with some loss of territory. In the subsequent half century, the Finns made a remarkable transformation from a farm/forest economy to a diversified modern industrial economy; per capita income is now among the highest in Western Europe. A member of the European Union since 1995, Finland was the only Nordic state to join the euro system at its initiation in January 1999. In the 21st century, the key features of Finland's modern welfare state are a high standard of education, equality promotion, and national social security system; currently challenged by an aging population and the fluctuations of an export-driven economy.
cold temperate; potentially subarctic but comparatively mild because of moderating influence of the North Atlantic Current, Baltic Sea, and more than 60,000 lakes
air pollution from manufacturing and power plants contributing to acid rain; water pollution from industrial wastes, agricultural chemicals; habitat loss threatens wildlife populations
party to: Air Pollution, Air Pollution-Nitrogen Oxides, Air Pollution-Persistent Organic Pollutants, Air Pollution-Sulfur 85, Air Pollution-Sulfur 94, Air Pollution-Volatile Organic Compounds, Antarctic-Environmental Protocol, Antarctic-Marine Living Resources, Antarctic Treaty, Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Environmental Modification, Hazardous Wastes, Law of the Sea, Marine Dumping, Marine Life Conservation, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94, Wetlands, Whaling
signed, but not ratified:
none of the selected agreements
long boundary with Russia; Helsinki is northernmost national capital on European continent; population concentrated on small southwestern coastal plain
civil law system based on Swedish law; the president may request the Supreme Court to review laws; accepts compulsory ICJ jurisdiction with reservations
elections:
president elected by popular vote for a six-year term (eligible for a second term); election last held on 15 January 2006 (next to be held in January 2012); the president appoints the prime minister and deputy prime minister from the majority party or the majority coalition after parliamentary elections and the parliament must approve the appointment; Prime Minister VANHANEN reelected on 17 April 2007
election results:
percent of vote - Tarja HALONEN (SDP) 46.3%, Sauli NIINISTO (Kok) 24.1%, Matti VANHANEN (Kesk) 18.6%, Heidi HAUTALA (VIHR) 3.5%; a runoff election between HALONEN and NIINISTO was held 29 January 2006 - HALONEN 51.8%, NIINISTO 48.2%; Matti VANHANEN reelected prime minister; election results 121-71
note:government coalition - Kesk, KOK, VIHR, and SFP
unicameral Parliament or Eduskunta (200 seats; members elected by popular vote on a proportional basis to serve four-year terms)
elections:
last held on 18 March 2007 (next to be held in March 2011)
election results:
percent of vote by party - Kesk 23.1%, Kok 22.3%, SDP 21.4%, VAS 8.8%, VIHR 8.5%, KD 4.9%, SFP 4.5%, True Finns 4.1%, other 3.4%; seats by party - Kesk 51, Kok 50, SDP 45, VAS 17, VIHR 15, SFP 9, KD 7, True Finns 5, other 1 (the constituency of Aland)
general courts - deal with criminal and civil cases (include district courts, Courts of Appeal, and the Supreme Court or Korkein Oikeus, whose judges are appointed by the president); administrative courts
Center Party or Kesk [Matti VANHANEN]; Christian Democrats or KD [Paivi RASANEN]; Green Party or VIHR [Anni SINNEMAKI]; Left Alliance or VAS [Paavo ARHINMAKI] (composed of People's Democratic League and Democratic Alternative); National Coalition Party or Kok [Jyrki KATAINEN] (conservative); Social Democratic Party or SDP [Jutta URPILAINEN]; Swedish People's Party or SFP [Stefan WALLIN]; True Finns [Timo SOINI]
white with a blue cross extending to the edges of the flag; the vertical part of the cross is shifted to the hoist side in the style of the Dannebrog (Danish flag); the blue represents the thousands of lakes scattered across the country, while the white is for the snow that covers the land in winter
Finland has a highly industrialized, largely free-market economy with per capita output roughly that of Austria, Belgium, the Netherlands, and Sweden. Trade is important with exports accounting for over one third of GDP in recent years. Finland is strongly competitive in manufacturing - principally the wood, metals, engineering, telecommunications, and electronics industries. Finland excels in high-tech exports such as mobile phones. Except for timber and several minerals, Finland depends on imports of raw materials, energy, and some components for manufactured goods. Because of the climate, agricultural development is limited to maintaining self-sufficiency in basic products. Forestry, an important export earner, provides a secondary occupation for the rural population. Finland had been one of the best performing economies within the EU in recent years and its banks and financial markets avoided the worst of global financial crisis. However, the world slowdown hit exports and domestic demand hard in 2009, with Finland experiencing one of the deepest contractions in the euro zone, and will serve as a brake on economic growth in 2010. The slowdown of construction, other investment, and exports will cause unemployment to rise further from the 2009 level. The recession will leave a deep, long-lasting mark on general government finances and the debt ratio. It turned previously strong public finances into deficit within a year. In the next few years, the great challenge of economic policy will be to implement a post-recession exit strategy in which measures supporting growth will be combined with general government adjustment measures. Longer-term, Finland must address a rapidly aging population and decreasing productivity that threaten competitiveness, fiscal sustainability, and economic growth.
note:see entry for the European Union for money supply in the euro area; the European Central Bank (ECB) controls monetary policy for the 16 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of money and quasi money circulating within their own borders
general assessment: modern system with excellent service
domestic:
digital fiber-optic fixed-line network and an extensive mobile-cellular network provide domestic needs
international:
country code - 358; submarine cables provide links to Estonia and Sweden; satellite earth stations - access to Intelsat transmission service via a Swedish satellite earth station, 1 Inmarsat (Atlantic and Indian Ocean regions); note - Finland shares the Inmarsat earth station with the other Nordic countries (Denmark, Iceland, Norway, and Sweden)
120 (plus 431 repeaters) (1999); note - on 1 September 2007, Finland began broadcasting all television signals digitally; analog broadcasts via cable networks were discontinued 29 February 2008
by type:
bulk carrier 3, cargo 28, carrier 1, chemical tanker 6, container 3, passenger 5, passenger/cargo 18, petroleum tanker 5, roll on/roll off 27, vehicle carrier 2
foreign-owned:
8 (Estonia 2, Germany 1, Norway 3, Sweden 2)
registered in other countries:
47 (Bahamas 9, Germany 4, Gibraltar 3, Netherlands 14, Norway 1, Panama 2, Saint Kitts and Nevis 1, Sweden 12, UK 1) (2008)
18 years of age for male voluntary and compulsory - and female voluntary - national military and nonmilitary service; service obligation 6-12 months; mandatory retirement at age 60 (2008)
various groups in Finland advocate restoration of Karelia and other areas ceded to the Soviet Union, but the Finnish Government asserts no territorial demands
The online Factbook is updated bi-weekly. ISSN 1553-8133
For additional information on government leaders in selected foreign countries, go to World Leaders.
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